| With the advent of short-term financing bills in China,the size of China's credit bond market has risen rapidly.Medium and long-term financing instruments such as corporate bonds and medium-term notes have been continuously innovated,enriching the investment varieties of the domestic bond market.In addition,the implementation of the registration system,the filing system and other approval systems have greatly satisfied the financing needs of the issuers,and promoted the continuous development of China's credit bond market.However,as the bond market moves forward,the number of bond default events is also rising.In 2014,the tradition of rigid redemption in China's bond market was broken,the credit risk of bond market broke out,and bond default became the norm.In this context,it is very urgent and realistic to explore the reasons for the current bond default in China and find out the countermeasures to reduce the risk of bond default.The impact of the default of Yongtai Energy Bonds is extensive,and the reasons for default are highly representative.It is a typical case for studying bond defaults.Yongtai Energy is the only privately listed company in the coal sector.It was formerly a small lubricant blending plant in Tai'an City.After many changes and restructurings,it was renamed Yongtai Energy Co.,Ltd.,and its business is mainly concentrated in the coal and power sectors.Yongtai Energy's operating conditions have been normal before the bond default,but the corporate bonds issued by corporate bonds,short-term financing bills and medium-term notes have higher interest rates,which has brought greater debt repayment pressure to enterprises.On July 5,2018,Shanghai Clearing House announced that the principal and interest of the short-term financing bill "17 Yongtai CP004" was not repaid on time and a material breach of contract occurred.After the bond defaults,the company handles the default by selling its own assets,debt restructuring,debt-to-equity swaps,and cooperation with financial institutions such as banks.The bond default is the result of a combination of factors.From the inside of the enterprise,first,its own financial risks are too large,such as the asset-liability ratio is too high,resulting in default of bonds;second,the company's profitability and solvency are weakened,the company has problems such as insufficient liquidity;third,corporate funds Unreasonable raising and use increases the risk of default.As far as external factors are concerned,the first is the tightening of financial supervision,which leads to the decline of corporate financing capacity;the second is the high credit rating,which has induced many investors to invest.In addition,the impact of Yongtai Energy Bond default is greater.Affected by the default of Yongtai Energy Bond,first,a large-scale cross-default in the bond market led to turmoil in the bond market;second,the stocks and bonds of the enterprises themselves and related institutions fell,the financing capacity declined,and production and operation were severely hindered;It is the renewal period of credit funds of banks and other financial institutions,and the risk of capital increases.Fourth,investors lose money and their interests are seriously damaged.Based on the above,this paper proposes relevant recommendations to prevent bond default risk,which can be summarized into the following four main body solutions.First,bond issuers,including optimizing the financial structure of the company,setting up a reasonable investment plan,following industry policies and market demand,improving financing capabilities,and arranging effective default measures;second,bond market regulators,government and others.Regulators should strengthen supervision over credit rating and information disclosure.Third,intermediaries,including credit rating companies,should upgrade their own standards and do their due diligence.Fourth,bond investors should improve themselves.Risk identi:fication capability,post-investment tracking management,etc.,effectively reduce investment risks. |
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